Business Strategy

A Report on
Digitalization of Companies- PAYTM

Done By:
Beemisetty Akshitha Priya-082
Meenakshi Varma-114
Sanjana Rachamalla Goud- 463
Amaan-527
Kruthi-545
Rishitha- 587
Rahul-944

Submitted to: Dr. Sweta Singh

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Table of Contents
Executive Summary ...................................................... 3
Company Profile .......................................................... 3
What is Digitalization? .................................................. 4
What is Digitaization Strategy ....................................... 4
Evolution of Digitalization in India ................................. 5
Evotion of PAYTM'S Digitalization Strategies ................. 6
Winning Strategies of PAYTM ....................................... 9
SWOT Analysis .......................................................... 10
Conclusion ................................................................. 12
References ................................................................ 12

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 Paytm Company Profile
Executive Summary:
Paytm stands for "pay through mobile," is Indian financial services and digital payments
corporation headquartered in Noida.
Vijay Shekhar Sharma, working with One97 Communications, launched it in 2010.
Consumers may use the company's mobile payment services, and its point of sale, internet
payment gateway, and QR code solutions make it possible for businesses to accept payments.
Paytm provides its customers and merchants with financial services, including micro-loans and
buy now, pay later in collaboration with financial institutions. The firm also offers online games,
retail brokerage services, ticketing services, bill payments and money transfers.

HISTORY:
Vijay Shekhar Sharma, the company's creator, invested US$2 million when Paytm was
first established in Noida, India, in August 2010. It began as a prepaid cell and DTH recharge
platform before growing into a top provider of financial services and digital payments, with a
wide range of products ranging from partner-based financing to offline devices.
The business introduced the Paytm Wallet in 2014, sparking a revolution in digital
payments across the nation. In addition to launching BHIM UPI, Paytm became the first payment
app in India to surpass 10 crore app downloads in 2017. In 2018, the firm released the "Paytm
for Business" software for businesses, enabling them to receive payments at no cost via Paytm
Wallet, UPI, and cards into their bank accounts.
In 2018, Paytm began offering loans on its platform in collaboration with renowned
lenders. The company's first offering was Paytm Postpaid (Buy now, pay later), followed by
immediate personal and merchant/business loans. The company introduced Paytm First, a
subscription-based loyalty programme, in March 2019. Later that year, it teamed up with
Citibank to provide the Paytm First credit card.
One97 Communications, the parent company of Paytm, submitted a draught red herring
prospectus to the Securities and Exchange Board of India in July 2021 in preparation for the
business's first public offering (IPO). In November 2021, it began its first public offering (IPO),
raising 18,300 crores (US$2.5 billion) at a valuation of almost US$19 billion. It was the largest
IPO India had ever seen at the time.

Vision
Paytm stands for "Pay through Mobile," the company's digital transactional services.
Paytm Karo is the company's slogan for its vision.

Mission

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 The company's goal is to use payments, commerce, banking, investments, and financial
services to integrate half a billion Indians into the global economy.

What is digitalization?
The term "digitalization" describes the use of digital technologies and digitized data to
enable or improve processes. Digitalization, therefore, assumes digitization. Simple examples of
this could be sequenced logic for a batch operation, automated shutdown logic, PID control in a
microprocessor-based system, etc. It could also be something more complicated, such as a
transmitter fault that results in the creation of a work order for a maintenance technician in the
ERP maintenance system.
Digitalization lowers expenses while increasing productivity and efficiency. A current
business process or processes are improved by digitization, but they are not altered or
transformed. In other words, it converts a process from a human-driven action or sequence of
actions to a software-driven action.
In the past few decades, digitalization has drastically changed practically every element
of existence. The availability of the internet, the rise in mobile phone usage, social media, and
other ICT services altered how people connect, communicate, study, and work in practically
every country. According to "the term digitization refers to "the action or process of digitising;
the conversion of analogue data (especially in later application photos, video, and text) into
digital form." In a general sense, the term "digitalization" refers to the incorporation of digital
technologies into routine activities across organizational, corporate, and other societal areas.

What is Digitization Strategy?

The business sector will inevitably and inexorably become more digital. A company's
long-term strategy for keeping up with the swift digital developments occurring in their pertinent
industries and sectors is known as a digitization strategy. All businesses need to have a clear plan
in place for how they will adjust to a world that is quickly going digital.
A proper digitization strategy is both a top-down and all-inclusive blueprint for how your
company will be adjusting to the anticipated digital developments in your industry.
Effective digitization strategies begin with a thorough forecast of the pertinent market
and sectoral changes in the digital space over the course of the next 5, 10, and 20 years. Your
digitization plan needs to have a clear understanding of how your business will fit into this
evolving market.
The basic business model, operations, and steps of the value chain, like marketing and
customer service, should all be digitalized as part of an effective digitization strategy.
Although navigating this new digital environment might be challenging, some
Consultport consultants are prepared to assist in setting your business' course for success.

● Identifying Market Evolutions:

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 Before your company can develop an effective and efficient digitization strategy,
you need to be able to foresee the changes to your business sector and its relevant
markets as a result of digitization. A digitization expert with deep sectoral knowledge can
help you understand how your industry is set to evolve in the near future and throughout
the coming decades.

● Finding Your Place In a Digital Future:

Your business will require a clear vision for how it will fit into a more digitalized
market. As your industry becomes more digital, a consultant will pinpoint your
company's advantages and disadvantages, enabling you to target a particular market niche
that takes into consideration how your primary rivals and the industry as a whole will
develop over time.

● Define Your Future Digital State:

A thorough digitization strategy requires a comprehensive vision of what your
company will look like in the digital era. A clearly defined vision of your company’s
future digital state will allow you to develop precise plans for evolving from your current
state to your digital one.

● Assessing Digitization Gaps:

Most companies will have outstanding digitization gaps that will be the main
impediments to their digital evolution. No digitization strategy can advance successfully
if the core areas of your business are not adaptable to standard digitization practices. A
consultant can help your company to identify these significant digitization gaps and close
them.

● Establishing a Digital Ready Culture:

A vital component of any effective digitization strategy is ensuring that your
business has a full and comprehensive digital culture that is aware of the changes
occurring and capable of providing natural, bespoke solutions that are appropriate for
your business's particular qualities. Every employee and procedure in your company is
affected by digitization, which is not just a top-down managerial process. The culture of
your business can be kept up to date with the larger digital evolution with the help of a
consultant.

Evolution of Digitization in INDIA:

When it comes to governance, India has been a continual disaster throughout the history
of digitalization. The ways and means of governance have not changed over time and are a
hindrance to growth.
Only 15% of the population had access to mobile devices, and only 19% of people were
online.

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 The UPA government launched an E-governance strategy in 2006 in an effort to connect
governmental services to telecom services. This fell short of expectations and was quickly
dropped.
Digital India:
In order to advance the concept, if not the actual implementation, Prime Minister
Narendra Modi introduced the Digital India initiative in September 2015.
In September 2015, Narendra Modi introduced the Digital India initiative.
The primary goal of Digital India is to provide rural areas with the nation with the best
online infrastructure, online service delivery, and online literacy. The Ministry of
Communications and IT's Digital India Advisory group has been given the authority to manage
the project's operations. The assignment includes components related to healthcare, education,
and judicial services.
The national government's goal for the "Digital India" initiative has led to inclusive
growth in the provision of electronic services, goods, manufacturing, and employment
possibilities.
India is a global leader in the development of payment systems. In India, ideal conditions
for widespread use of digital payment systems have been established by enablers like Jan Dhan,
Aadhaar, cellphone penetration, and more recently, demonetization.
By 2020, the nation is anticipated to surpass plastic payment systems and have the most
sophisticated financial systems in the entire globe thanks to the widespread use of digital and
biometric systems.
If technology businesses want to encourage innovation in a digital economy like India,
they should use public-private partnerships.
The difficult road that Digital India has travelled teaches us that it might be too soon to
affix a "e-" to everything and declare a problem "fixed." The programme and its activities also
show how technology's thin veneer may conceal exclusion and power.

Paytm started the Digital Revolution in India.

Paytm introduces cashless payment methods.

Over 300 million Indians use Paytm to make purchases at their merchants. Additionally, the
Paytm app is used to book movies and plane tickets in addition to paying bills and performing
recharges.
Paytm helps its merchant partners build their businesses by providing services like the ability to
sell tickets, advertising, and loyalty programmes like discounts and gift cards. They furthermore
offer software and cloud services to businesses, telecommunications firms, and digital and
fintech platforms in order to monitor and improve client interaction, create payment
infrastructure, and uncover customer data. Customers may access services like gaming, buying
tickets for entertainment and travel through our commerce offers, which create a lifestyle

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destination. User engagement and retention are significantly impacted by the simplicity of access
to such services within the Paytm App ecosystem.
The global increase in mobile phone users has significantly boosted the potential market for
internet marketing and cashless transactions. Through its cashless transaction programmes, the
corporation has been able to reach clients with cellphones.
The global increase in mobile phone users has significantly boosted the potential market for
internet marketing and cashless transactions. Through its cashless transaction programmes, the
corporation has been able to reach clients with cellphones.
A vital part of daily living is paying our bills, shopping, and interacting with others. The
handling of cash was the sole way to make such payments. However, the rapid expansion of
markets, the variety of our daily needs, and the prevailing digital trend have made the drawbacks
of traditional cash-based transactions and online money transfer alternatives clear. Cash-based
transactions are also concealing.
The emergence of the coronavirus epidemic has made financial transactions dangerous.
The Covid-19 epidemic, broad digitization initiatives, and demonetization have all led to a rise in
the number of digital transactions. Paytm, one of the first mobile payment applications, has
altered Indian history.
In January 2014, the Paytm wallet was subsequently released.
It has been chosen by Indian Railways and Uber. Paytm has begun offering online bus and
ticketing services for e-commerce. In 2016, they began distributing movie tickets, park
admission passes, Paytm QR codes for booking flights, train reservations, and gift cards.

The Paytm Mall made its debut in February 2017. Paytm established Paytm Mall in an effort
to enter the online retail market.
Another excellent choice this project made was to enable the Paytm wallet. The Paytm Mall,
which was first constructed with a $200 million financing infusion from a Chinese corporation,
has received ongoing support from Alibaba and Ant Financial.

Paytm, a supplier of digital payments, announced a mini app store on October 5, 2020, to help
Indian app developers and company owners.
Paytm has emerged as the Google Play Store's main competition. Paytm established the Mini app
store in response to its temporary suspension from the Google Play store on September 18 as a
result of a violation of the developer requirements for real money gambling.
Customers who use mini apps benefit from data and memory savings since they provide an app-
like experience without downloading.
The mini-app shop only had a few apps at first, but it was successful in the business's plan to
provide 300 services within a few days. The Paytm Mini Store now has over 600 registered apps,
and another 1000 apps are still under development. According to a press release about Paytm's
launch, the mini-app store was developed to help small developers aand companies in India set
up inexpensive and simple build apps using HTML and Javascript.

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Paytm introduces contactless ordering in-store.
Paytm claimed to have developed an online ordering platform where eateries would give patrons
a QR code to scan in order to see the menu and place orders.
Customers won't have to touch the menu, which can be unclean, thanks to the contactless
ordering and eating process, and there will be some room between them and the wait staff.

Paytm's primary goal is to launch in the top 30 cities with over one lakh eateries that will operate
in this manner now that the lockdown has been removed. This concept has the potential to be
very successful since it assists restaurants in reopening their doors after a long period of closure.
This concept of contactless ordering and eating was utilised to reduce the spread of coronavirus
illness once the country reopened. Furthermore, eateries have been advised to maintain adequate
sanitary conditions as well as a certain distance between consumers and proprietors.

Paytm Payment Gateway provides 100% online onboarding, rapid activation, and minimal
documentation, allowing you to begin collecting payments within 24 hours.
The most popular option among prominent startups and businesses in India, Paytm Payment
Gateway provides all the important elements required for a business to ensure hassle-free
transactions.
While shopping on the internet, customers can select from more than 100 different payment
methods. Furthermore, with over 250 million stored cards, 100 million saved bank accounts, and
15 million UPI IDs, customers may trade quickly and conveniently without having to enter
payment information again and again.
Paytm Payment Gateway can process up to 3000 transactions per second with 99.99% uptime,
ensuring that payment delays or failures are minimal.
Moreover, neither the client nor the firm is required to track and follow up on receipts.
Messages, alerts, and confirmation emails simplify and transparent the process.
Furthermore, for merchants, the dashboards provide a complete breakdown of amounts deposited
and debited via the different payment sources.

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Paytm marketing techniques
Paytm introduces cashless payment methods.
The global growth of mobile phone users has increased the potential market for online
marketing and cashless transactions. With its cashless transaction schemes, the company has
been able to reach customers with smartphones.
Paytm's Advertising and Promotion Strategies
• The company's offline communication networks included newspapers, public
transportation, and television. Paytm promotions also made use of digital, print, and radio
services.
• Paytm was made a household name by using the catchy phrase "Paytm karo." • The
company's online advertisement strategy focuses on bringing visibility everywhere by
sharing their ad on Facebook and Twitter, as well as sponsored posts on Instagram and, at
times, Snapchat.
Paytm's Discount Offers
• Without a doubt, the biggest selling point for paytm was motivating people to use the
company's offers. Add to this the cashback and discounts provided by mobile wallets
such as Paytm, as well as the reward points and loyalty benefits provided by existing
credit and store cards.

Paytm-created campaigns
• Karo Paytm
This is one of the key announcements that gained popularity quickly. The company
has started using social media. Almost every Facebook and Twitter conversation now
includes the hashtag #PaytmKaro. The advertisement depicts various life situations, such as
money transfer, online shopping, and mobile recharge, that are made easier by Paytm
services.

• Facebook Live
Paytm has instilled in its customers the importance of user account security and how
it protects them from hacking. Paytm ran a live Facebook training series called "Paytm
Merchant Connect- Training Series," which was a huge success.

• Soldier: Mobile Game

It has evolved into an ideal campaign for technology enthusiasts and game enthusiasts
all over the world. The game depicts the battle against the dishonest Spartan Paytm militias.
The game focuses on the company's mission of protecting its users' interests.

• Paytm-sponsored events
➢ The company was involved in sponsoring a variety of events, tournaments, and so
on, which gave the brand a lot of exposure.

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 ➢ Paytm is the official sponsor and supporter of India's cricket team, which gives
the brand a lot of publicity and exposure around the world.
➢ The company received 120 seconds of airtime for each match played in the
tournament, and the brand's increased popularity during the World Cup resulted in
the launch of new TV advertisements during the IPL 8 season.

Paytm's Co-Branding
Another unique selling point of the company is co-branding. Brand collaboration with
companies such as Uber and Meru Cabs has been a success. Many more reputable brands have
been instrumental in attracting new customers to Paytm.

SWOT Analysis:
Strengths of Paytm:
• Strengths are the distinct characteristics of an organization that give it an advantage in
gaining a larger market share, attracting more customers, and increasing profitability. The
following are Paytm's strengths:
• First in the Market: The founder played a wise game by innovating and launching
Paytm at a time when smartphone sales were booming in the market.
• Ease of Payments: Paytm has made life easier by offering round-the-clock payment
options and the ability to transfer funds at any time and from any location at a 0% fee.
This increased its popularity and acceptance among both urban and rural populations, as
it met everyone's daily needs.
• User & Merchant Base: Paytm's merchant and user base is rapidly expanding, with
more than 20 million merchants and businesses using Paytm to accept payments digitally,
and 300 million Indian users using Paytm to pay at merchant stores. The figure is
expected to rise further in the coming years.
• Big Investors: Paytm receives significant funding and financial support from some of the
world's largest companies and investors, including Tata, Ant Group, Alibaba Group,
SoftBank, and others. These companies have a large stake in Paytm, which helps it to
increase its market valuation and become the most valuable company in India.
• User Friendly Interface: Paytm is a user-friendly service application that offers almost
everything from online reservations to online retail and recharge. Paytm's application is
also user-friendly and secure, allowing you to conduct transactions without hassle or
concern.

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Weaknesses:
Paytm's Weaknesses are characteristics of a company or brand that should be enhanced. Paytm's
main flaws are as follows:

• Customer Service: There are numerous customer service issues, including a lack of a
helpline number and FIRC filing delays. Paytm's call center representatives are
frequently rude and unable to handle many of the inquiries.
• Experiencing Fraudulent Behavior: Electronic transactions are undeniably simple,
convenient, and appropriate. Even so, it necessitates a certain amount of risk. As a result,
technical assistance as well as a secure mechanism will be required to complete the
transaction and transfer payments.
• Requires an Internet Connection: The entire transaction mechanism for sending and
receiving money, as well as opening an account, is dependent on the internet and a fast
connection. It is capable of operating in both advanced and developed environments.
Paytm services, on the other hand, would be ineffective in developing and emerging
economies where internet access is a major concern.
• Fear of Losing Money: Because most Indians are used to transacting in cash, they are
still wary of making online payments and transactions. However, things are changing,
and the people of India will follow suit. Online wallet services will be added to secure
digitalization in the near future.

Paytm Opportunities
Opportunities are areas where a company can focus to improve performance, services,
and, ultimately, profit.

• Digital Cryptocurrency: Freelancers and online users are increasingly utilising digital
crypto-currencies such as bitcoins. Many platforms will even accept cryptocurrency.
Many factors, including digital literacy, internet connectivity, and the internet, have
contributed to its expansion. It also allows Paytm to either launch or begin accepting this
currency.
• From Cash Economy Towards Digital Economy: Developing economies, such as
India, are attempting to go cashless or reduce their reliance on currency. Paytm has a
fantastic opportunity to expand its services and capitalize on the potential.

Threats to Paytm
Threats are environmental factors that can impede a company's growth. Threats to Paytm
include the following:

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 • Competition: Paytm faces stiff competition from platforms such as PayU, Razorpay,
PayPal, and others, all of which compete for the same market share as Paytm. Paytm has
always been susceptible to competition and will remain so in the future.
• Fraud & Hackers: When we consider the company's operations, we discover that it
operates in over three countries. It also poses a significant security risk to hackers
worldwide.
• Strong Economic Regulations and Policies: Some countries, such as Taiwan, China,
and Japan, have strict rules and regulations that make it difficult for corporations such as
PayPal to set up shop.

Conclusion:
Paytm has successfully persuaded Indians to not rely on cash in everyday transactions.
People in the nation opt to conduct these transactions digitally instead. This has been achieved by
a number of programmes, such as Aadat Se Azadi or Habit Free, by emphasising the problems
consumers encounter while interacting with digital payment choices.
It is currently one of India's most well-known unicorns. They are concentrating more and
more on high-quality digital marketing strategy as they grow.

References:
• https://www.indiatoday.in/amp/impact-feature/story/paytm-
payment-links-transforming-digital-payments-for-retailers-
freelancers-social-media-sellers-1953852-2022-05-25
• https://d3.harvard.edu/platform-digit/submission/paytm/
• https://www.thehindubusinessline.com/money-and-
banking/paytm-has-highest-penetration-in-digital-payments-
report/article65000308.ece/amp/

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